Understanding Legal (Mental) Capacity

What is legal (mental) capacity? From a legal perspective, legal capacity is the ability (or lack of ability) for a person to understand the nature of an agreement / contract / their actions, along with the corresponding consequences. A person who lacks capacity cannot enter a contract because they are not able to understand what they are entering into. They also cannot be held accountable for their actions in the same way of someone who understands teh consequences of their actions.This is very different than not understanding the terms of a contract. Watch this video to learn more about Alberta law on capacity. This is a very brief overview and it is important for people to seek legal advice before they try to avoid the consequences of their actions based on a lack of capacity.

Category:

You may also like

There are technical, legal and practical answers to this question. Learn if an estate needs to be probated. Save money! Avoid Liability! This short wills and estates video on probating estates in Alberta give insight int...

What is a Special Power of Attorney? There are misunderstandings about them that can cause problems. A special power of attorney in Alberta is a document that allows someone else to do something for you.
Jeffery Kahan...

This video deals with situation where you have drawn up your will but your executor or personal representative is out of town. It is usually better to have an executor who lives in the same province as you. If an executo...

How trust provisions for children help protect the assets in your estate and children from over spending. These are also known as trusts for minors. The trust provisions allow kids to use funds for education or living ex...